24 Hour Fitness, San Ramon, California, emerged from Chapter 11 bankruptcy on Dec. 31 after completing its financial restructuring process and has implemented the plan of reorganization confirmed by the U.S. Bankruptcy Court on Dec. 21, according to an announcement from the company.
24 Hour Fitness filed for bankruptcy on June 15. The company now has an optimized cost structure and leaner balance sheet after eliminating $1.2 billion of funded debt, according to the announcement.
A new board of directors has been appointed in conjunction with the emergence from Chapter 11 to help 24 Hour Fitness navigate through the next phase of its strategic plans.
“24 Hour Fitness is now well-positioned and well-capitalized to become the leading fitness provider,” 24 Hour CEO Tony Ueber said in the announcement.
Prior to the temporary club shutdowns in March due to COVID-19 and subsequent staff layoffs, 24 Hour had 445 clubs in 14 states and 19,200 employees. Now, 24 Hour has about 300 clubs in 13 states, according to the company.
“Safety will continue to be our top priority as we move forward with reinvesting in our clubs and introducing new and innovative member wellness experiences to enhance our clubs,” Ueber said. “We are looking forward to continuing to help change lives every day by offering best-in-class fitness experiences long into the future.”
As of the time of the emergence, 24 Hour had 91 clubs open nationwide for indoor operations. It also had 40 clubs open for outdoor operations. Due to mandated business closures on the West Coast, 24 Hour has outdoor clubs operating in Hawaii, Oregon and California.
For members who are not yet ready to return, 24 Hour is offering more than 1,000 free on-demand workouts through its 24GO fitness app.
Ueber thanked the company’s team members, club members and financial partners for their support of the company and its strategy.
“As we start the new year, fitness is more important than ever for the physical and mental health of our communities,” Ueber said. “I am optimistic about the long-term prospects for our business and our industry.”